OP token crashed 6% within a couple of hours, as the Optimism project team announced that it will insert a very big number of OP tokens in the crypto market.
Optimism is a super chain project to Ethereum that enables users and developers to benefit from the latter’s strong security guarantees while being cheaper and faster. The OP token is used for governance.
As per the scheduled plan, the Optimism project team will insert nearly 335 million OP tokens in circulation. This figure is 9% of the total supply of this token but it is nearly double the current circulating supply.
At the current trade price, the worth of 335 million tokens is nearly $587 million.
Because of this news, the OP token investors are in huge panic. Popular crypto news website Cointelegraph noted that analysis from token unlock research firm Unlock Calendar reported that op token price may face a significant downfall ahead token supply unlock plan because the early investors of this token are still in big profit, so they will not take any chance over their profit.
Under the current high sell pressure in the OP token trade market, the trade price of this token plunged by nearly 6% within a few hours.
Since this news has brought a net negative impact on the trade price of this token but still few people are expecting to get a better return.
Few crypto traders are waiting to see more correction in the OP token trade price so that they can buy at a discount.
On 6 June, Optimism will go through a network upgrade. With the upgrade, Optimism aimed to bring more efficient crypto transactions, reduce transaction fees, & offer more security with better compatibility with the Ethereum blockchain network.
Network upgrade news will act as another catalyst to pump the trade price of this token.